The U.S. foreclosure inventory shrank 34.4 percent in July compared with the same time last year, according to a new report Black Knight Financial Services. That is the lowest level of foreclosure inventory since March 2008. There were 90,700 foreclosure starts in July, up 2.7 percent compared with June, but down 19.6 percent compared to July 2013.  

The total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) was 5.6 percent, down 1.1 percent from June and down 12.1 percent from July 2013.

The total inventory of distressed properties across the country – those with delinquent loans and those which are in foreclosure – numbered 3.79 million in July, down 49,000 from June and down 814,000 from July 2013.

The top five states with the greatest number of delinquent loans as a percentage of all loans were Mississippi (14.2 percent), New Jersey (12.4 percent), Florida (10.9 percent), Louisiana (10.9 percent) and New York (10.8 percent).

Massachusetts was among the top five states for the greatest number of seriously delinquent loans (those 90 or more days past due) ranking fourth with 3.4 percent of Bay State loans in that category. The other states in the top five were Mississippi (5.3 percent), Alabama (3.8 percent), Rhode Island (3.5 percent) and Louisiana (3.4 percent).